Good day, ladies and gentlemen, and welcome to the Raven Industries, Inc. Fiscal 2013 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session with instructions to follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host for today, Mr. Tom Iacarella, Chief Financial Officer. Sir, you may begin.

Thank you, operator. Joining me on today’s call is Dan Rykhus, Raven’s President and Chief Executive Officer. Before we begin we would like to remind participants that the information contained in this call is current only as of today, November 20, 2012. The company assumes no obligation to update any statements including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to the Safe Harbor disclaimer in today’s press release. With that, I would now like to introduce Dan for strategic look at Raven’s third quarter.

Thanks, Tom, and welcome everyone to our fiscal third quarter conference call. I will start off with an overview of our performance then talk about each of our divisions in more detail, and finally speak to our expectations going forward. Tom will then provide you with a look at our financials, including a discussion of margins and the balance sheet, and after that we will open up the call for your questions. So, let’s begin with our performance for the third quarter. Sales increased 4% to $97 million from $93.3 million in the prior year period. Growth resulted from strength in the Applied Technology Division, along with the addition of Vista Research revenues in the Aerostar Division. Engineered Films sales declined slightly from the record levels in the year-ago third quarter. While we faced some headwind during the quarter there were encouraging developments within all of our divisions. We continue to benefit from favorable market dynamics in agriculture and this generated strong Applied Technology sales. Within Aerostar, Vista Research revenues helped to moderate Aerostar’s volatility. Engineered Films saw improved demand for enclosure films used in commercial construction markets, offsetting a decline in energy market sales. Through our diversified business model, we are once again able to deliver a topline gain. As a company, Raven is well positioned for growth. We are financially strong with no debt and we have fantastic long-term prospects. One of the hallmarks of our proven business model is the ongoing investment in our business development pipeline. The quality of our pipeline is very strong and encouraging even though we faced other uncertainties in the marketplace. It’s this strength that ensures our competitiveness and gives us the ability to grow our business and fulfill our purpose, which is to solve great challenges. Our ability to solve great…

Thanks Dan. Hopefully, all of you have had a chance to review this morning’s release. I will discuss our balance sheet changes and operating margins in more depth, and then as Dan said, we will take questions. First, the balance sheet, we ended the quarter with $48 million in cash and investments. That’s up $3.9 million from last October and $22.2 million more than our January 31 balance. We have been able to sustain our strong cash position, despite investments in production capacity, research and development and Vista Research We spent $12 million to purchase Vista, then paid off our short-term borrowings immediately after closing in January. We have nine months operating cash flows of $58 million compared to $37.7 million last year. The $20 million increase was driven by improved working capital utilization relative to sales growth and higher nine months income. Inventories at quarter-end were essentially unchanged from previous October. Inventory turns have been pretty steady and levels did decline as the quarter came to a close. Accounts receivable rose $4.8 million over last October, DSO has moved up modestly, and we have seen some slowdown in payments, so we are monitoring some specific accounts. Our balance sheet ratio at the end of the third quarter was 4.05 versus 4.07 last year. The balance sheet and cash flow from operations that provide a strong source for investment funding and dividend growth. Turning now to capital spending, as Dan said, we continue our commitment to invest in our businesses, and to that end, capital expenditures were up slightly for the nine-month period. Year-to-date, we have invested in expanding our Engineered Films extrusion and conversion capacity, along with our ability to reprocess faster growth. We have also made significant progress on our corporate facilities, renovation project and the Raven innovation…

(Operator Instructions) Our first question today comes from the line of Andrea James from Dougherty & Company. Your line is open. Please go ahead. Andrea James - Dougherty & Company: Hi, thank you for taking my question. So, Dan and Tom, what’s been sort of the biggest surprise for you this year, relative to sort of the growth guidance that you have tried to stick to 10% to 15%? I guess what sort of surprised as we head into Q4?

I think there has been a combination of things, Andrea, that got us to the performance, and we have touched on a lot of that in the comments already. But certainly, the overall demand in Aerostar (inaudible) and we had hoped and expected that we would start to see a little bit of additional demand on the aerostat side by now that hasn’t materialized. So, that would be probably the largest factor. The other factor would be just a little bit of softening in the energy market that’s impacting your Films division. So, that would probably yes, in Films, we did have some Ag demand, softening as a result from the drought and certainly less green was produced in the Mid-West and that resulted in less need for green covers, which held that down a little bit. And so, those would be the things that I would attribute where we are at today. Andrea James - Dougherty & Company: Okay. Thank you. And then my one follow-up, and then I will hop back in the queue to be polite. I guess how are you thinking about revenue and earnings growth next year, just given this deceleration, and if you know, you are sort of sticking to this long-term 10% to 15%, what kind of gets you excited or gets you there, or gets you to that number?

We outlined in the comments already. Our business development pipeline is fundamental part of our business model. And you have heard me talk about our business model that we serve market niches that we think have great growth prospects, and we stick to those, we invest in the business development pipeline. So, we have prospects that will come from the Vista Research acquisition that we think are going to make a good contribution next year. We have just a variety opportunities in Aerostar that we believe are going to deliver some strong opportunities next year in EMS, in lighter-than-air applications, and this is a little difficult, because we have protect the customers and partners that we have been working with in building this pipeline. But I feel very good about our prospects for Aerostar next year. In Applied Technology division, we think they are going to continue to have a good year next year. And I have already talked about the Films opportunities with the green films and the sustainable films that we are introducing. Our continued work at margin enhancement in films I think will continue to pay dividends for us. So, I am actually pretty bullish about our year next year, and I think what I said in the comments hold true to – we think we are going to continue to meet our long-term earnings growth expectations, and I feel that way, because I can see the pipeline that we have invested in over the last couple of years, I see it maturing. And yes, that gives me confidence.

Thank you. Our next question is from the line of Andrew O’Connor from BMO Asset Management. Your line is open. Please go ahead. Andrew O’Connor - BMO Asset Management: Good morning Dan, good morning Tom.

Good morning. Andrew O’Connor - BMO Asset Management: With interest rates so low, are there any thoughts about a modest use of debt to finance a portion of Raven’s growth CapEx or perhaps a strategic use of debt again to finance a portion of Raven’s growth CapEx? Thanks so much.

Tom can talk about the use of extra CapEx. What we have said is that if there is an acquisition that we were pursuing that really fit our product strategy for one of the three divisions and it was larger than what we have done in the past, we wouldn’t shy away from using some debt. So, we are not averse to debt completely. We do like to keep our balance sheet strong in our view, but Tom, why don’t you go ahead and talk to the use of debt for CapEx and maybe on an overall basis?

Thank you, Dan. The use of debt is something, as Dan said, we are not averse to, we just have a business model that generates tremendous amount of operating cash flows and have been able to demonstrate that over the years. So, in terms of creating a funding that we need internally to fund our organic growth, that’s been a pretty consistent cadence over the years and have been pretty effective for us. I think if we found an opportunity to move the company forward in some ways, as Dan said, through an acquisition or found some other opportunities to take on some debt, we would certainly take a hard look at it. Andrew O’Connor - BMO Asset Management: Got you. And then, Dan, is it possible to guesstimate what precision Ag sales might have been without the U.S. drought? And if you can take a stab at quantifying this, could you speak to it on a qualitative basis? Thanks again.

Our OEM demand was strong, right on through the drought, and that’s a significant part of our business. There might have been a little hesitancy through our aftermarket demand, which is over half of our business that could have been 5% to 10% pull-back on demand as a result of just uncertainty, I don’t think it’s a fundamental shift in the marketplace, I think it’s a timing issue. And that would be a guess, and that’s all it is, a guess. It’s very, very hard to quantify that.

Thank you. Our next question is from the line of Rob Crystal from Goldman Sachs. Your line is open. Please go ahead.

Hi Dan and Tom, I had two questions. One was on the bad debt expense, can you quantify how much higher than normal that was? And then, secondarily on the energy slowdown, is that primarily natural gas-related and can you refresh us how much your business goes gas versus oil? Thanks.

Sure. Tom, you want to go ahead on the first one?

Yes, the bad debt expense was about $300,000 beyond what we have typically been running, but we have been running at a very, very low level. We haven’t had any significant write-offs for several years. So, that’s the pace with that, that was in the quarter.

Okay, great. So, nothing too significant?

No.

Okay.

So, rig counts are down about 12%, I believe over the prior year, and that hurts a plan-based rig count that is – the majority of our business is related to oil, but the natural gas slowdown has been pretty substantial. So, that’s about as much color as I can give on the breakdown.

Okay. That’s great. Thanks so much. I will jump back in the queue. Thanks.

Thank you. Our next question is from the line of Don Andersen from Red Pine Investments. Your line is open. Please go ahead.

Good morning. I just wanted to ask a question about your EFD division. I noticed over the last many years, you had very good growth overall, but it has been quite, not so much cyclical, but large increases and small increases, and then this year, went from 37% up to 5% down. And in terms of, I know you have already talked about opportunities, but do you see like you are seeing Aerostar and you have mentioned this in past report, do you see any sizeable or breakout opportunities in the Engineered Films division in light of the fact that you have got such really good strong capability there?

I guess it depends on how you define breakout, but our Films growth is, we like to believe it will be stable, steady growth business for us, and it is a capital-intensive business and capacity-driven business. So, our ability to grow in a breakout fashion will always be tempered by our ability to actually produce the pounds. We think we can grow the business, 15%, 20%, 25% in any given year, and that’s on the top line, we think that we can continue to see strong margins out of that business. We have demonstrated our ability to improve operating efficiencies and to buy Raven rights and price our products appropriately to manage strong business. And certainly, when we look at growth, we look at bottom line growth, operating income growth for that division. So, those are the ways that we look at, how we can grow the operation. We do have a cadence of ongoing capacity and capability investment, which consumes a large part of our overall corporate capital investment strategy, and we do that in order to continue to refine capabilities and product offerings that we can deliver to our five key markets and have that ongoing capacity available to support our growth.

Thanks. That’s a great answer. Could you just give me correctly the five markets you are talking about?

Certainly. We serve the agriculture market, construction, what we call energy, geomembranes and then industrial, which is kind of a mixture of different applications.

Thank you. Our next question is from the line of Alan Brochstein from AB Analytical Services. Your line is open. Please go ahead.

Okay. Not to beat the dead horse, Dan, on the bad debt, doesn’t sound like it’s a big problem, but I am just curious, maybe bigger picture, the shift to international, does that impact the DSO rise, and is that maybe where some of these credit concerns come up?

Tom, go ahead and take that.

While there is no question that when you do ship internationally that those has some impact on the risk profile of your accounts receivable, and certainly that has had some impact on the bad debt situation. And it’s just a matter of managing those risks and keeping on top of it. Again, the number was not used, but it’ a little bit of a change for us and something different, something that we haven’t had in the past.

Thank you. Our next question comes from the line of Bes Louis [ph] from Camco Investors. Your line is open. Please go ahead.

Good morning Dan and Tom.

Good morning.

I wanted to, I am sorry if I missed this, but in terms of your Applied Technology, there you saw a good growth on the top line. Could you point out international versus domestic?

Tom, did you – I don’t believe we provided that this quarter. Did you, Tom?

No, it’s not in the numbers that we have disclosed. It’s grown at a little slower pace than what we had seen in some of the prior quarters, probably in that little less than 10% for the quarter in Applied Technology.

The domestic pieces?

Pardon me?

Domestic has grown less than 10%?

No, the foreign group investment, just a little bit less than 10%.

Okay, because in prior quarters, the international portion of that has grown at a much faster rate. Is that correct?

It’s varied, it’s been faster, I think probably for the last few years. I think over the course of this year at least, for the last few quarters, I think it’s grown lot of pace. That’s been pretty consistent with the overall growth.

Thank you. (Operator Instructions) Our next question is a follow-up from the line of Andrea James from Dougherty & Company. Your line is open. Please go ahead. Andrea James - Dougherty & Company: I thank you for taking my follow-up. I have just two. The first on Engineering Films. I feel like we are seeing some emerging players in this space in the energy market. And I was wondering what you think about your market share there and do you feel like it’s stable? And then on the geomembrane side, would you say that you were taking market share there? Thank you.

I think we have long – we have a lot of customers that have been with us for a long, long time. So, we have some pretty deep relationship built there into each of our market segments. So, I feel like we are in a strong position in ag and energy and instruction, the geomembrane business is really more of an emerging market. And we have good partners that we have developed over the last two to five years in that market space that we are winning some business with. As far as new competitors we take, our strategy is largely built on high value, high performance films, and we have some competition there, but a lot of the competition that we face really takes a different approach in terms of the performance of films that they provide the marketplace. So, our challenge is to continue that out innovate, provide high service and high quality solutions, and we think that that’s going to continue to be a winning formula for the markets that we serve. There are certainly going to be focus that get share that we don’t go after. But we are okay with that, we think our strategy will serve us well and provide the growth and hold up the margins that come to expect for that business. As far as the geomembranes, I think a lot of these are bid jobs. So, when we win it, we take it away from somebody else. So, I suppose you could say that’s in market share increase for us in the geomembrane space. Andrea James - Dougherty & Company: Okay. Thank you. And then on the Applied Technology, do you think you are done scaling up the business there or do you feel like you have right-sized your operating staff and support, or do you still have some more to go?

In ATD? Andrea James - Dougherty & Company: Yes.

The way you grow ATD is we need to continue to develop new products. So, we have an ongoing cadence of identifying new technology that we think is going to be important in the precision ag space and developing and bringing on engineering product development, product management, marketing talent to help us execute on that. So, we have an ongoing need for additional talent. In terms of physical spaces we are in good shape now for quite a while, we have made some investments in our buildings and we are good shape that way. Now we are going to continue to have to invest in staffing levels to support our growth expectations there. And we will continue to look for acquisitions that can bring on technology like we did Ranchview 3 years ago and that delivered clean shot. We are going to continue to look for technology place that we have done in the past that can really enhance our overall product line.

Thank you. Our next question is from the line of John Rankin from Boranco Management LLC. Your line is open, please go ahead.

Single-digit growth, is that for this fiscal year or next fiscal year? And if so, could you tell me – are you talking middle single-digits or what are your thoughts?

I am sorry, John. I didn’t get the first half of your sentence, but I think what you asked is, is the single digit growth for this year’s projection or for next year? Is that correct?

That’s exactly right. And then, is it middle single-digit growth or could you venture a guess on that?

Okay. Well, I will answer the first one and it’s definitely for this year is what the commentary is around. And as far as, narrowing that down, I am really not going to go there. It’s a challenging fourth quarter and it would really be an interesting finish for the year because ATD has the potential to have a very strong fourth quarter. But the other two divisions have some uncertainties. So, I am comfortable with our statements that it will be in the single digits and I am not able to give you any more specific guidance beyond that.

Okay. Can I get just a little more color on income statement elimination in the balance sheet, is that going to continue, maybe a little more from that?

Tom, I will let you handle that one.

Sure. The eliminating entries that we have on our income statement rollup of the segments, our primarily sales from the Aerostar’s EMS products to ATD. So, they do some self-assemblies and some other work for ATD, just like they would do to an outside customer. And of course, we can’t recognize those sales twice, so we have to eliminate those in our consolidation process. And that’s something that will continue on, as long as they continue to pursue that way.

John, I don’t know if you are still on, but I do want to clarify also that for next year we expect to definitely grow the business at least hitting our 10% to 15% long term earnings growth expectations. We manage the business towards that end and we believe that we will have opportunities to meet that long term growth expectation next year.

Thank you. Our next question is a follow-up from the line of Alan Brochstein from AB Analytical Services. Your line is open, please go ahead.

Two of the last several years you guys have paid a special dividend, have you ruled that out this year, or is it under consideration?

Operator, I am not getting the half of the first sentence here, so, Allen could you repeat that please?

Yes, I am sorry, Dan. In two of the past 4 years you guys have paid us special dividend, I was just wondering if you have ruled it out this year, or is it under consideration?

That’s a Board decision of course. I would not say it’s ruled out, but we as I have said throughout the year we have plenty of opportunities to invest in high quality business development activities for the companies and we really believe in our growth prospects for next year and the following year, and we believe that those are prudent investments to help grow earnings in the further. So, I am not ruling it out, but I wouldn’t give it a high probability.

Okay, thanks. And then as a follow-up, last time you told us a little bit more about your OEM business, I think it was new information regarding Monsanto as being a partner. It’s growing very well, can you give us a little bit more information just about your OEM partners in general, and kind of what you guys – why you think they are partnering with you?

Sure. Well, we have had long term relationships with the big three agricultural OEMs for well, in the way of Agco in case for decades, and with Deere we have been developing a new relationship over the last 3 or 4 years to bring technology to them that fills the gap that they are not developing on their own. But beyond that we have I believe 30 OEM relationships. So, we do a lot of business with smaller agricultural companies that you may not have heard of but domestically and internationally. And what we do is we develop control systems that help to make their equipment more efficient and we fill gaps that they are not interested and not able to be leading edge on, and once we fill the relationships with an OEM we are pretty good at maintaining that for the long term. And knowing that we need to commit resources to understand what their needs are and their strategies are and develop technology that help them differentiate themselves. So the OEM business for us has grown to be a substantial percentage of our overall business within ATD, I will tell you, it’s over 40% of our business today. So, it’s good work for us and we enjoy it and I think our customers believe that we add good value to what they are trying to accomplish.

Thank you. I am showing no additional questions in queue. I would like to turn the conference back over to Dan Rykhus for any closing remarks.

Sure, thanks operator. And thanks again for taking the time to join us on the call today and for all those questions. Helping customers solve great challenges in hunger, safety, environmental protection and energy independence remains the driving force behind everything we do. We are continuing to invest in the company, expanding both our base of fixed assets and product lines. And Raven’s diversified business model enables us to weather the near term challenges, while continuing to grow and build for the further. And we look forward to updating you on our progress in the future. Thanks again.